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Their View: Those receiving paper checks from government need to make switch

Posted:
11/20/2012 02:34:46 AM MST

The U.S. Department of the Treasury has been transitioning recipients of federal benefits from paper checks to electronic payments since 2010. The final deadline for all recipients to make the transition is March 1, 2013.

An estimated 2,800 federal benefit checks — primarily to Social Security and Supplemental Security Income recipients — are still mailed in Doña Ana County each month, according to Treasury data. That's about 6.3 percent of all federal benefit payments to county residents.

Those still receiving checks can choose one of two options going forward, either direct deposit of their benefits to a bank account, or through a prepaid debit card. If recipients make no choice, they will be switched to the prepaid debit card.

Recipients can contact their bank or credit union for more details, or call (800) 333-1795.

The Treasury has been making the transition for a number of reasons. Switching to electronic benefits will save taxpayers an estimated $1 billion over a decade.

And electronic payments have a safety advantage for recipients. Last year, more than 440,000 Social Security and SSI checks were reported lost or stolen.

"The switch to electronic payments is a win-win for federal benefit recipients and for taxpayers," Treasurer of the United States Rosie Rios said earlier this year. "It provides a safer, more secure, more convenient way for Americans to access their federal benefits, while also improving government efficiency and delivering more than $1 billion in savings.

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The switch to electronic payments can be challenging, particularly in communities where many people have never had a bank account. Many recipients have simply gotten used to the check-based system. But friends and family can help their loved ones make the transition.

Also, many banks and credit unions will work with senior citizens and people with disabilities to help set up low- or no-cost accounts.

More information on electronic payment is available at www.GoDirect.org.

Paper benefit checks will only continue for about 100 more days. If you or a loved one is still receiving a paper benefit check from the federal government, now's the time to make the switch to electronic benefits.